Documents & Reports

Cash transfers, behavioral changes, and cognitive development in early childhood : evidence from a randomized experiment (English)

Abstract

This brief summarizes the results of a gender impact evaluation study, entitled Cash transfers, behavioral changes, and cognitive development in early childhood : evidence from a randomized experiment, conducted between November 2005 and December 2006... See More +This brief summarizes the results of a gender impact evaluation study, entitled Cash transfers, behavioral changes, and cognitive development in early childhood : evidence from a randomized experiment, conducted between November 2005 and December 2006 in Nicaragua. The study observed the impact of cash transfer program on early childhood cognitive development on the child level. The program improved child development and the effects did not fade out 2 years after the program concluded. The program effects are comparable to increasing the schooling of the mothers by 1.5 years. Beneficiaries spent more on child inputs such as nutrient-rich foods, preventative health, and child stimulation. Beneficiaries had standardized outcomes that were 0.09 standard deviations above the control group. Cognitive and socio-emotional outcomes improved by 0.12 standard deviations after one year and 0.08 standard after 2. Mothers assigned a lump sum payment worked 33 days more in 2006, but this effect wore off by 2008. There is no evidence of program impacts on mental health of mothers or quality of the home environment. Funding for the study derived from the Strengthening Rural Women's Economic Empowerment through Information and Social Capital, and Spanish Impact Evaluation Fund.
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